Peapod Online Case Study Essays - 1245 Words

Peapod Online Grocery Case Analysis Abstract This paper explores Peapod Online Grocery (2008) and its possibilities for success and failure based on several types of consumer behaviors. Most analysts do not expect the online grocery business to become more popular than the 8 to 10 percent of consumers that are estimated to purchase their products online. Parkinson, one of the founders of Peapod could not disagree more. â€Å"He states that this strategy can leverage the buying power of Ahold to make higher volume, lower priced purchases, lower distribution and transportation costs† ( Peter amp; Olson, 2010). The types of consumers attracted to online grocery shopping are also discussed as well as why these consumers find online†¦show more content†¦Peapod operates in many U.S. markets and closely affiliates itself with Ahold grocery chains. In 2001, Royal Ahold purchased a controlling interest in the company for $73 million. The new business model for online grocers is to be part of an existing br ick and mortar chain. Safeway and Albertson’s are experiencing sales growth in their online business. Environmental Effects on Attitude and Behavior Many behaviors are involved in online grocery shopping. Whether simply browsing the Internet for a meal or recipe ideas, or undertaking a major grocery shopping trip, the fit between in home and now mobile behaviors and the relatively complex task of in store grocery shopping has developed positive synergies with the current online business models. â€Å"Perishables’ remain one of the last few items to go digital. The environment can strongly influence Peapod customers. The environment refers â€Å"to all the physical and social characteristics of a consumer’s external world, including physical objects (products and stores), spatial relationships (location of stores and products in stores), and the social behavior of other people (who is around and what they are doing) (Peter amp; Olson, 254). Consumers such as working mothers and fathers, bachelors or fulltime students can find Peapod as a helpful convenience in their otherwise difficult daily duties and are mor e likely to really value andShow MoreRelatedEssay on Fresh Direct Case Analysis966 Words   |  4 PagesFresh Direct Case Study Report COMPANY NAME Fresh Direct www.freshdirect.com Online Grocery Market BACKGROUND /HISTORY FreshDirect is an online grocery that conveniently sells and delivers fresh foods and popular household items, to certain residents of the New York City Area. This online grocery market offers organic, farm-fresh produce than most market places. 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